Regina/ 14 miles South of Moose Jaw Saskatchewan | Have a question about the economics of property - hoping someone may have some experience & can offer some insight.
Say you had a piece of ground that had a cash value of $100,000. You were able to rent it for $5,000.00 per year - some expenses (property taxes, etc.) - so you have a source of income from that property.
In a purchase scenario - you get the $100,000 & can invest - maybe get the 5%, maybe not - I understand the arguments one way vs another.
What about the scenario where you as the seller are asked to carry the mortgage for the property? Does this have any potential benefits? I can envision that you would need pretty good discipline to rebuild the principle amount based on the mortgage payments - I'd assume there's a sliding scale of what is interest payment, and what portion of the payment would be considered capital recovery & taxed based on that....
Anyway just curious if there are any financial benefits to carrying mortgages...
Thanks
Doug W. |
Question re: Holding Mortgage on Property
